โ๏ธโ ๏ธ๐Here's a breakdown of the factors contributing to the drop in Bitcoin demand since April:๐ป๐ป๐ป ๐โคด๏ธ๐ช$BTC
1. _Decrease in spot ETF purchases in the U.S._ ๐: Fewer investors are buying Bitcoin through exchange-traded funds (ETFs), which are financial products that track the price of Bitcoin.
2. _Decreasing whale holdings_ ๐ณ: "Whales" are large-scale Bitcoin investors. If they're selling or reducing their holdings, it can impact demand.
3. _Long-term holders accumulating at record rates_ ๐: Despite the drop in demand, long-term investors are still buying and holding Bitcoin, which could be a sign of confidence in its future value.
4. _Short-term holders suffering unrealized losses_ ๐ฌ: Investors who bought Bitcoin during the 2024 rally are now experiencing losses due to the price drop.
5. _Surge in Bitcoin mining costs_ ๐ธ: The cost of mining Bitcoin has increased significantly due to:
- _Operational expenses_ ๐: Higher costs for miners to operate.
- _Mining difficulty increases_ ๐: The computational power required to mine Bitcoin has increased, making it more challenging and expensive.
These factors combined have led to a decrease in Bitcoin demand since April ๐. However, long-term holders continue to show confidence in Bitcoin's potential, accumulating it at record rates ๐ช.